Commercial Lease Agreement

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Commercial leases involve a lot of negotiation, but if you've nailed down the terms, you may not need an attorney to draft the legal document. Choose from the following professional digital forms. A free boilerplate form is also provided for reference.

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The form below is a very basic one, using boilerplate language, and is intended for educational purposes only. It has not been vetted by an expert, or updated. It may not be legally valid.

COMMERCIAL LEASE AGREEMENT

This Commercial Lease
Agreement (Lease) is entered into on this ____ day of ___________,
20__, by and between __________________ (Landlord) and
_________________ (Tenant). Landlord is the owner of land and
improvements whose address is: __________________________________.
Landlord makes available for lease a portion of the Building
designated as ____________________(Leased Premises).

Landlord desires to lease
the Leased Premises to Tenant, and Tenant desires to lease the Leased
Premises from Landlord for the term, at the rental and upon the
provisions set forth herein.

THEREFORE, in consideration
of the mutual promises contained herein, and for other good and
valuable consideration, it is agreed:

Term.

The Initial Term of the
Lease shall begin on the _____ day of _____________, 20__, and end on
the _____ day of _____________, 20__. Landlord shall use its best
efforts to put Tenant in possession of the Leased Premises on the
beginning of the Lease term. If Landlord is unable to timely provide
the Leased Premises, rent shall abate for the period of delay. Tenant
shall make no other claim against Landlord for any such delay.

Tenant may renew the Lease
for one extended term of _______________________. Tenant shall
exercise such renewal option, if at all, by providing written notice
to Landlord not less than ninety (90) days prior to the expiration of
the Initial Term. The renewal term shall be at the rental set forth
below and otherwise upon the same covenants, conditions and provisions
as contained in this Lease.

Rent.

Tenant shall pay to
Landlord during the Initial Term rent of _________________ Dollars ($
) per year, payable in installments of _______________ Dollars ($ )
per month. Each installment payment shall be due in advance on the
first day of each calendar month during the lease term to Landlord at
the following address:

The rental payment amount
for any partial calendar months included in the lease term shall be
prorated on a daily basis.

Tenant shall also pay to
Landlord a "Security Deposit" in the amount of
__________________ Dollars ($ ).

The rental for any renewal
lease term, if created as permitted under this Lease, shall be
__________________ Dollars ($ ) per year payable in installments of
_____________ Dollars ($ ) per month.

Prohibited Uses.

Notwithstanding the
forgoing, Tenant shall not use the Leased Premises for the purposes of
storing, manufacturing or selling any explosives, flammables or other
inherently dangerous substance, chemical, thing or device.

Sublease and Assignment.

Tenant shall have the right
without Landlord's consent, to assign this Lease to a business with
which Tenant may merge or consolidate, to any subsidiary of Tenant, to
any corporation under common control with Tenant, or to a purchaser of
substantially all of Tenant's assets.

Except as set forth above,
Tenant shall not sublease all or any part of the Leased Premises, or
assign this Lease in whole or in part without Landlord's consent, such
consent not to be unreasonably withheld or delayed.

Repairs.

During the Lease term,
Tenant shall make, at Tenant's expense, all necessary repairs to the
Leased Premises. Repairs shall include such items as routine repairs
of floors, walls, ceilings, and other parts of the Leased Premises
damaged or worn through normal occupancy, except for major mechanical
systems or the roof, subject to the obligations of the parties
otherwise set forth in this Lease.

Alterations and
Improvements.

Tenant, at Tenant's
expense, shall have the right, upon obtaining Landlord's consent, to
remodel, redecorate, and make additions, improvements and replacements
of and to all or any part of the Leased Premises from time to time as
Tenant may deem desirable, provided the same are made in a workmanlike
manner and utilizing good quality materials. Tenant shall have the
right to place and install personal property, trade fixtures,
equipment and other temporary installations in and upon the Leased
Premises, and fasten the same to the premises. All personal property,
equipment, machinery, trade fixtures and temporary installations,
whether acquired by Tenant at the commencement of the Lease term or
placed or installed on the Leased Premises by Tenant thereafter, shall
remain Tenant's property free and clear of any claim by Landlord.
Tenant shall have the right to remove the same at any time during the
term of this Lease provided that Tenant shall repair, at Tenant's
expense, all damage to the Leased Premises caused by such removal.

Property Taxes.

Landlord shall pay, prior
to delinquency, all general real estate taxes and installments of
special assessments coming due during the Lease term on the Leased
Premises, and all personal property taxes with respect to Landlord's
personal property, if any, on the Leased Premises. Tenant shall be
responsible for paying all personal property taxes with respect to
Tenant's personal property at the Leased Premises.

Insurance.

If the Leased Premises or
any other part of the Building is damaged by fire or other casualty
resulting from any act of negligence by Tenant or by any of Tenant's
agents, employees or invitees, rent shall not be diminished or abated
while such damages are under repair, and Tenant shall be responsible
for the costs of repair not covered by insurance.

Landlord shall maintain
fire and extended coverage insurance on the Building and the Leased
Premises in such amount as Landlord shall deem appropriate. Tenant
shall be responsible, at its expense, for fire and extended coverage
insurance on all of its personal property, including removable trade
fixtures, located in the Leased Premises.

Tenant and Landlord shall,
each at its own expense, maintain a policy or policies of
comprehensive general liability insurance with respect to the
particular activities of each in the Building with the premiums
thereon fully paid on or before due date. Such insurance policy shall
be issued by and binding upon an insurance company approved by
Landlord, and shall afford minimum protection of not less than
$1,000,000 combined single limit coverage of bodily injury, property
damage or combination thereof. Tenant shall provide Landlord with
current Certificates of Insurance evidencing Tenant's compliance with
this Paragraph.

Utilities.

Tenant shall pay all
charges for water, sewer, gas, electricity, telephone and other
services and utilities used by Tenant on the Leased Premises during
the term of this Lease unless otherwise expressly agreed in writing by
Landlord. In the event that any utility or service provided to the
Leased Premises is not separately metered, Landlord shall pay the
amount due and separately invoice Tenant for Tenant's pro rata share
of the charges.

Tenant shall pay such all
such utility charges prior to the due date. Tenant acknowledges that
the Leased Premises are designed to provide standard office use
electrical facilities and standard office lighting. Tenant shall not
use any equipment or devices that utilizes excessive electrical energy
or which may, in Landlord's reasonable opinion, over load the wiring
or interfere with electrical services to other tenants.

Signs.

Following Landlord's
consent, Tenant shall have the right to place on the Leased Premises,
at locations selected by Tenant, any signs which are permitted by
applicable zoning ordinances and private restrictions. Landlord may
refuse consent to any proposed signage that is in Landlord's opinion
too large, deceptive, unattractive or otherwise inconsistent with or
inappropriate to the Leased Premises or use of any other tenant.
Landlord shall assist and cooperate with Tenant in obtaining any
necessary permission from governmental authorities or adjoining owners
and occupants for Tenant to place or construct the foregoing signs.
Tenant shall repair all damage to the Leased Premises resulting from
the removal of signs installed by Tenant.

Entry.

Landlord shall have the
right to enter upon the Leased Premises at reasonable hours to inspect
the same, provided Landlord shall not thereby unreasonably interfere
with Tenant's business on the Leased Premises.

Parking.

During the term of this
Lease, Tenant shall have the non-exclusive use in common with
Landlord, other tenants of the Building, their guests and invitees, of
the non-reserved common automobile parking areas, driveways, and
footways, subject to rules and regulations for the use thereof as
prescribed from time to time by Landlord. Landlord reserves the right
to designate parking areas for Tenant and Tenant's agents and
employees. Tenant shall provide Landlord with a list of all license
numbers for the cars owned by Tenant, its agents and employees.

Building Rules.

Tenant will comply with the
rules of the Building adopted and altered by Landlord from time to
time and will cause all of its agents, employees, invitees and
visitors to do so; all changes to such rules will be sent by Landlord
to Tenant in writing. The initial rules for the Building are attached
hereto as Exhibit "A" and incorporated herein for all
purposes.

Damage and Destruction.

If the Leased Premises or
any part thereof or any appurtenance thereto is so damaged by fire,
casualty or structural defects, such damage or defects not being the
result of any act of negligence by Tenant or by any of Tenant's
agents, employees or invitees, that the same cannot be used for
Tenant's purposes, then Tenant shall have the right within ninety (90)
days following damage to elect by notice to Landlord to terminate this
Lease as of the date of such damage. In the event of minor damage to
any part of the Leased Premises, and if such damage does not render
the Leased Premises unusable for Tenant's purposes, Landlord shall
promptly repair such damage at the cost of the Landlord. In making the
repairs called for in this paragraph, Landlord shall not be liable for
any delays resulting from strikes, governmental restrictions,
inability to obtain necessary materials or labor or other matters
which are beyond the reasonable control of Landlord. Tenant shall be
relieved from paying rent and other charges during any portion of the
Lease term that the Leased Premises are inoperable or unfit for
occupancy, or use, in whole or in part, for Tenant's purposes. Rentals
and other charges paid in advance for any such periods shall be
credited on the next ensuing payments, if any, but if no further
payments are to be made, any such advance payments shall be refunded
to Tenant. The provisions of this paragraph extend not only to the
matters aforesaid, but also to any occurrence which is beyond Tenant's
reasonable control and which renders the Leased Premises, or any
appurtenance thereto, inoperable or unfit for occupancy or use, in
whole or in part, for Tenant's purposes.

Default.

In the event of a default
made by Tenant in the payment of rent when due to Landlord, Tenant
shall have fifteen (15) days after receipt of written notice thereof
to cure such default. In the event of a default made by Tenant in any
of the other covenants or conditions to be kept, observed and
performed by Tenant, Tenant shall have thirty (30) days after receipt
of written notice thereof to cure such default. In the event that the
Tenant shall fail to cure any default within the time allowed under
this paragraph, Landlord may declare the term of this Lease ended and
terminated by giving Tenant written notice of such intention, and if
possession of the Leased Premises is not surrendered, Landlord may
reenter said premises. Landlord shall have, in addition to the remedy
above provided, any other right or remedy available to Landlord on
account of any Tenant default, either in law or equity. Landlord shall
use reasonable efforts to mitigate its damages.

Quiet Possession.

Landlord covenants and
warrants that upon performance by Tenant of its obligations hereunder,
Landlord will keep and maintain Tenant in exclusive, quiet, peaceable
and undisturbed and uninterrupted possession of the Leased Premises
during the term of this Lease.

Condemnation.

If any legally, constituted
authority condemns the Building or such part thereof which shall make
the Leased Premises unsuitable for leasing, this Lease shall cease
when the public authority takes possession, and Landlord and Tenant
shall account for rental as of that date. Such termination shall be
without prejudice to the rights of either party to recover
compensation from the condemning authority for any loss or damage
caused by the condemnation. Neither party shall have any rights in or
to any award made to the other by the condemning authority.

Subordination.

Tenant accepts this Lease
subject and subordinate to any mortgage, deed of trust or other lien
presently existing or hereafter arising upon the Leased Premises, or
upon the Building and to any renewals, refinancing and extensions
thereof, but Tenant agrees that any such mortgagee shall have the
right at any time to subordinate such mortgage, deed of trust or other
lien to this Lease on such terms and subject to such conditions as
such mortgagee may deem appropriate in its discretion. Landlord is
hereby irrevocably vested with full power and authority to subordinate
this Lease to any mortgage, deed of trust or other lien now existing
or hereafter placed upon the Leased Premises of the Building. Tenant
agrees that it will from time to time upon request by Landlord execute
and deliver to such persons as Landlord shall request a statement in
recordable form certifying that this Lease is unmodified and in full
force and effect (or if there have been modifications, that the same
is in full force and effect as so modified), stating the dates to
which rent and other charges payable under this Lease have been paid,
stating that Landlord is not in default hereunder (or if Tenant
alleges a default stating the nature of such alleged default) and
further stating such other matters as Landlord shall reasonably
require.

Security Deposit.

Landlord shall hold the
Security Deposit without liability for interest and as security for
the performance by Tenant of Tenant's covenants and obligations under
this Lease, it being expressly understood that Tenant shall not
consider the Security Deposit an advance payment of rent or a measure
of Landlord's damages in case of default. Unless otherwise provided by
law or regulation, Landlord may commingle the Security Deposit with
Landlord' s other funds. Landlord may, from time to time, without
prejudice to any other remedy, use the Security Deposit to the extent
necessary to make good any arrearages of rent or to satisfy any other
covenant or obligation of Tenant hereunder. Following any such
application of the Security Deposit, Tenant shall pay to Landlord on
demand the amount so applied in order to restore the Security Deposit
to its original amount. If Tenant is not in default at the termination
of this Lease, Landlord shall return the balance of the Security
Deposit remaining after any such application to Tenant.

Notice.

Any notice required or
permitted under this Lease shall be deemed sufficiently given or
served if sent by United States certified mail, return receipt
requested, addressed as follows:

Landlord:

Tenant:

Landlord and Tenant shall
each have the right from time to time to change the place notice is to
be given under this paragraph by written notice thereof to the other
party.

Brokers.

Tenant represents that
Tenant was not shown the Premises by any real estate broker or agent
and that Tenant has not otherwise engaged in, any activity which could
form the basis for a claim for real estate commission, brokerage fee,
finder's fee or other similar charge, in connection with this Lease.

Waiver.

No waiver of any default of
Landlord or Tenant hereunder shall be implied from any omission to
take any action on account of such default if such default persists or
is repeated, and no express waiver shall affect any default other than
the default specified in the express waiver and that only for the time
and to the extent therein stated. One or more waivers by Landlord or
Tenant shall not be construed as a waiver of a subsequent breach of
the same covenant, term or condition.

Memorandum of Lease.

The parties hereto
contemplate that this Lease should not and shall not be filed for
record, but in lieu thereof, at the request of either party, Landlord
and Tenant shall execute a Memorandum of Lease to be recorded for the
purpose of giving record notice of the appropriate provisions of this
Lease.

Headings.

The headings used in this
Lease are for convenience of the parties only and shall not be
considered in interpreting the meaning of any provision of this Lease.

Successors.

The provisions of this
Lease shall extend to and be binding upon Landlord and Tenant and
their respective legal representatives, successors and assigns.

Consent.

Landlord shall not
unreasonably withhold or delay its consent with respect to any matter
for which Landlord's consent is required or desirable under this
Lease.

Performance.

If there is a default with
respect to any of Landlord's covenants, warranties or representations
under this Lease, and if the default continues more than fifteen (15)
days after notice in writing from Tenant to Landlord specifying the
default, Tenant may, at its option and without affecting any other
remedy hereunder, cure such default and deduct the cost thereof from
the next accruing installment or installments of rent payable
hereunder until Tenant shall have been fully reimbursed for such
expenditures, together with interest thereon at a rate equal to the
lesser of ______ percent (%) per annum or the then highest lawful
rate. If this Lease terminates prior to Tenant's receiving full
reimbursement, Landlord shall pay the un-reimbursed balance plus
accrued interest to Tenant on demand.

Compliance with Law.

Tenant and Landlord each
shall comply with all laws, orders, ordinances and other public
requirements now or hereafter affecting the Leased Premises.

Final Agreement.

This Agreement terminates
and supersedes all prior understandings or agreements on the subject
matter hereof. This Agreement may be modified only by a further
writing that is duly executed by both parties.

IN WITNESS WHEREOF, the
parties have executed this Lease as of the day and year first above
written.